A Lesson from the #THETA Trade.
Question:
Why do the price do these red candles on the way up? why can't the market just go from 0-100 right away.
Answer:
Well, if you ever had this question on your mind, then you don't know how Smart money play.
When Smart money "Market makers" decide it's time for an asset to pump, they can simply make it go x10 in a matter of a minute.
But doing so is no fun.. and also no profit.
so what they typically do, is that they drive the price up to a certain level, and during this phase, retailers "You&I.." jump in and buy with them, and then they just sell us a portion of their holdings, cause the price to retrace alittle bit.. also causing some people to think that the price will now go short, and open future short contracts..
then the Market makers will drive the price even more now, to liquidate shorters and during this phase, they are buying the asset from Retailers who thought the asset is loosing value and start panic sell their bags.
that's why they are trillionaires and we are retailers!
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